Nobody downloaded yet

Implications for Managers of Multinational Corporations (MNCs) - Essay Example

Comments (0) Cite this document
The process of expansion for the multinational companies has been facilitated due to liberalization by the governments of other nations, due to free flow of money across borders and due to the growth in world trade. Organizations can source not only raw materials but even human resources from anywhere across the globe…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER98.5% of users find it useful
Implications for Managers of Multinational Corporations (MNCs)
Read TextPreview

Extract of sample "Implications for Managers of Multinational Corporations (MNCs)"

Download file to see previous pages However, managers of the multinationals that seek to venture into emerging economies need to evaluate the business environment as their strategies are shaped by forces beyond their control. The managers have a vital role to play while formulating new strategies and organizational structures when dealing with Governments and companies in emerging markets. Financial strategy The emerging markets have fast growing GDPs thereby offering the MNCs with great opportunities and profit potential. However, the MNCs face not only the risks of cultural and institutional differences, the managers of the MNCs also have to take into account the risks inherent in unpredictable politics and unstable economies (Anonymous, 1995). The managers thus have the responsibility to develop financial strategies that provide protection from excessive risks. As far as financial strategies are concerned, some MNCs use instruments such as asset-backed securities while others work with regional and global banks. Financial institutions such as the Asian Development Bank help the governments establish priorities for economic reform and development. The regional/local governments offer resistance to MNCs as it fears the domestic production would be affected. The governments feel that while the MNCs would bring cutting-edge technology along with FDI into emerging economies, there is resistance from the domestic competitors. The managers must also take into account technology transfer, cultural distance, international experience, immigrant experience, industrial barriers, foreign exchange rate and host country barriers (Zhao & Decker, 2004). The MNCs have the power to stifle economy because of their sheer size or so believes the emerging economy governments and hence the MNCs may face protectionist attitude from the host governments. MNCs may have anti-corporate and anti-establishment sentiments triggered by the civil societies in the host governments. Thus through the right entry strategy the managers can overcome resistance offered by the protectionist government. The MNCs enter Central and Eastern Europe by forming strategic alliances through acquiring privatized firms or state-owned enterprises (Rondinelli & Black, 2000). These MNCs face the challenge of privatization although some governments do move ahead at speed to privatize the SOEs. Some Eastern Europe governments do make it difficult for foreign investors to enter into strategic alliances or form joint ventures. Russia receives very little FDI because of the high tariffs and non-tariff barriers on FDI. In fact, in some of the developing economies, the MNCs are seen as threats by some SOEs, privatized companies, government agencies or political interest groups that do not support foreign domination. Therefore the challenge for the MNC managers lies in developing alliances or acquisitions that benefits the shareholders, the host-country counterparts and the local government as well. The managers must hence prioritize business objectives while also selecting the best entry channels. They must evaluate the potential impact on the host-country stakeholders and determine local partner fit. If MNCs are seen as partners in privation and economic transformation the alliances or acquisitions are more likely to succeed. Substantial restructuring may need to be implemented by the MNCs to ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Implications for Managers of Multinational Corporations (MNCs) Essay”, n.d.)
Implications for Managers of Multinational Corporations (MNCs) Essay. Retrieved from
(Implications for Managers of Multinational Corporations (MNCs) Essay)
Implications for Managers of Multinational Corporations (MNCs) Essay.
“Implications for Managers of Multinational Corporations (MNCs) Essay”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Implications for Managers of Multinational Corporations (MNCs)

International Business in Emerging Markets

...?Question 2: What are the implications for managers of Multinational Corporations (MNCs) with regard to new strategies and organisational structures when dealing with Governments & Companies in Emerging Markets? To begin with, managers within multinational corporations (MNCs) have a responsibility to enact ways and means through which they can counter the hurdles in the wake of the strategic shifts and organizational changes that keep happening from time to time. These changes and restructuring are in line with the governments of the time and the companies which are a part of the emerging...
10 Pages(2500 words)Essay

Multinational Corporations

...? MULTINATIONAL CORPORATIONS of the School: Introduction Multinational corporations are large firms operating in more than one country. They usually have their headquarters in one country mostly the mother country. There are many multinational corporations in the world today. For instance coca cola, Barclays, shell, Guinness Breweries, DHL, IBM, MTN and others. The presence and establishment of MNC in developing countries has brought a lot of debates all over the world. Globalization-brought about by advancement in technology, transport, and communication- has made it possible for multinational...
7 Pages(1750 words)Essay

Multinational corporations and sweatshops is welcomed. The recent recessions and their implications have seen a number of companies lay off their workers and students drop out of schools. These factors combined have forced many workers to accept any environment condition, particularly workers in developing countries. These situations have been so dehumanizing that these individuals have found it acceptable to take any job offer. They have made employees be easily abused and exploited by their employers. This implies that, for the multinational corporations to stop these kinds of misuse and abuse of the workers, they must set up just backgrounds and institutions that will not allow for exploitation. This cannot happen if the...
6 Pages(1500 words)Essay

Topic: Research Ethics Review

...are emphasizing on MNCs (multinational corporations) that narrows down on the international human resource management (Shen, 2011). This article also discusses human resource management from different countries and finds big variations of management systems among countries. The reason for this is that IHRM has led to internationalization in business because international companies are increasingly producing and marketing beyond their origin (Wales, 2011). Critique of the article The article comprehensively covers international human resource management. Most laudable is the introduction of the concept of HRM and PR and...
10 Pages(2500 words)Essay

Multinational corporations

...without a critical understanding of the notion of democracy. The assumption of unequal gains from globalization has led to many demonstrations and opposition. Below is a short summary of the causes of unequal gains: Inequalities in the terms of trade the price earned by a country's exports as a ratio of the price paid out for its imports The role of multinational corporations or enterprises (MNCs/MNEs) Repatriation of profits Freedom to relocate if a subsidiary is relative less profitable Intra firm trade and manipulation of transfer (internal) prices; tax avoidance Monopoly power/profits Variability in productivity gains from FDI is related to: Demonstration effects One-off gains...
12 Pages(3000 words)Essay

Multinational Corporations

.... The company has major sporting events internationally. The coca cola company has sponsored such sports as football in developing nations by providing the teams with uniforms, painting stadiums e.t.c As Multinational corporations operate in many different countries, they are subject many tax jurisdictions. They are thus suppose to pay taxes in the countries that they operates. The tax systems usually differ between nations and thus the process is usually complex. These differences among the tax systems have affects the managers' decisions of the multinational corporations. The U.S government usually does not differentiate between that income which is...
2 Pages(500 words)Essay

Multinational Corporations

...MULTINATIONAL CORPORATIONS Introduction The end of cold war and the disintegration of the Soviet Union turned the world once polarized into two distinctive blocks into a singular entity which groped with its existence over a period of one and a half decade, until it achieved the present status. New as well as developing nations ran over one another to grab whatever opportunity they got to establish their identity in the new world scenario. The last few years have seen the development of rapid communication and transportation means in the world due to computerization and information technology. This has opened up new vistas and opportunities for the large corporations who are increasingly...
4 Pages(1000 words)Essay

Multinational Corporations

...Survey: Multinational Corporations Multinational Corporations Hypothesis – Foreign companies are doing more and more harm to the American economy The survey was intended to study the effect of multinational corporations on the economy of the US. In order to achieve this, a survey was conducted. The respondents were asked quite a number of questions and their responses were recorded and represented in graphs and charts. The first question asked whether the respondent had a family member who worked for a multinational corporation. 100% of the respondents said “Yes”, meaning that every family in USA has at least one member who works in a multinational corporation. All the four respondents also thought that multinational companies... are...
2 Pages(500 words)Essay

International Human Resource Management

...from empirical illustrations of Multinational corporations (MNCs) to explore the cultural implications for multinational corporations of different approaches to employee voice. HRM is not independent of environmental and various other factors within the enterprise; HRM policy and practices are determined by both internal and external factors yet the rising complexity of business operations inevitably complicates external business environments and HRM practices subsequently (Sylwia 2013, p.1147). One of the factors is culture, which refers to the learnt patterns of shared ideas and beliefs among certain groups of people, and is considered...
8 Pages(2000 words)Assignment

Globalization, Foreign Direct Investment (FDI), or Multinational Corporations (MNCs)

...and interventionist liberals agree that equality is the answer to problems such as the inability to manage resources relative to the development pace and reduce the number of peripheral states and vulnerable societal groups. CONCLUSION The idea of realists and critical theorists having a positive impact on an international platform attracts irrational criticisms; most of which exaggerate challenges relative to globalization, foreign direct investment (FDI) or Multinational Corporations (MNCs). Liberals have a rational argument about globalization and equality that it should be the prime facilitator of equal division of labor around the globe but most companies and...
4 Pages(1000 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Implications for Managers of Multinational Corporations (MNCs) for FREE!

Contact Us